Who are the leading IoT investors?

This blog post has been written by the person who has mapped the IoT investment market in a clean and beautiful presentation

The IoT investment landscape in 2024-2025 reveals a market where institutional VCs and corporate venture arms are driving significant capital into industrial applications and AI-enabled platforms.

With over $1.5 billion in disclosed funding across major rounds in 2024 and $825 million already deployed in the first half of 2025, the sector demonstrates robust investor confidence despite broader market headwinds. Corporate VCs from telecom giants and tech leaders are increasingly strategic participants, while Series B-D rounds of $25-200 million dominate the funding spectrum.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Who are the top venture capital firms actively investing in IoT startups in 2024 and 2025, and what are their most notable deals?

Techstars leads the IoT investment landscape with 73 active portfolio companies accumulated since 2016, demonstrating the most consistent commitment to IoT startups across stages.

Sequoia Capital emerged as the most aggressive institutional investor in 2025, leading Blues' $25 million Series C round in May 2025. Blues provides integrated hardware, software, and cloud solutions for secure product connectivity, representing Sequoia's bet on the convergence of IoT hardware and software platforms. Battery Ventures co-invested in this round, showing institutional coordination on promising connectivity plays.

Qualcomm Ventures maintains the strongest corporate VC presence with strategic investments in Augury's $75 million round in February 2025 and Blues' $25 million round. Their focus centers on companies that can drive adoption of Qualcomm's IoT chipsets and connectivity solutions. Intel Capital follows similar strategic logic, leading Skylo's $30 million round for satellite-cellular hybrid connectivity that complements Intel's edge computing hardware.

Deutsche Telekom Capital represents the telecom operator investment thesis, leading 1NCE's $60 million round in April 2025. This investment targets global IoT connectivity platforms that can drive data traffic across telecom networks. Robert Bosch VC focuses exclusively on industrial IoT hardware startups that integrate with Bosch's manufacturing ecosystem.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

Which IoT startups have received the largest funding rounds recently, and what specific products or services do these companies offer?

Terminus Technologies secured the largest IoT funding round with $276 million (CN¥2 billion) in April 2024, developing smart-city AI and IoT robotics platforms for municipal deployments across China.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

How much total funding has been raised in the IoT sector globally in 2024 and the first half of 2025?

The IoT startup ecosystem raised over $1.5 billion in disclosed funding rounds exceeding $50 million during 2024, with an additional $825 million deployed in the first half of 2025 across major rounds.

Enterprise IoT spending reached $298 billion in 2024, representing 10% year-over-year growth and indicating strong market demand driving investor confidence. The connected device count expanded to 18.8 billion units by end-2024, growing 13% annually and creating expanding addressable markets for IoT startups.

The funding distribution shows concentration in larger rounds, with seven deals exceeding $100 million in 2024 compared to three such deals in 2023. This pattern suggests investors prefer backing established players with proven traction rather than spreading capital across early-stage experiments.

However, precise global totals remain challenging to calculate as many Series A and mid-stage rounds below $50 million go unreported in public databases. Industry analysts estimate total IoT startup funding including smaller rounds likely exceeded $3 billion globally in 2024 when accounting for unreported transactions.

Which geographic regions are attracting the most IoT investment activity, and which cities are emerging as IoT hubs?

North America commands 36% of IoT startup activity and captures the largest share of funding dollars, with the San Francisco Bay Area, Boston, and Minneapolis serving as primary hubs.

The Asia-Pacific region accounts for 24% of IoT startups and demonstrates the fastest growth trajectory, driven primarily by China and India. Shenzhen leads as the manufacturing-focused IoT hub, while Bangalore emerges as the software and analytics center. Singapore serves as the regional headquarters for multinational IoT companies targeting Southeast Asian markets.

Europe shows notable growth in smart-city and industrial IoT applications, with Berlin, London, and Paris as established hubs. Cologne gained prominence following 1NCE's $60 million round, while Helsinki and Tel Aviv emerge as specialized centers for connectivity and cybersecurity technologies respectively.

Secondary hubs gaining traction include Seattle and Austin in North America, Seoul in Asia, and Stockholm in Europe. These cities benefit from strong technical talent pools and lower operational costs compared to primary hubs, attracting both startups and satellite offices of major IoT companies.

Are major tech companies participating in IoT investments directly or through their venture arms?

Major tech companies deploy capital through dedicated venture arms rather than direct investments, with Qualcomm Ventures and Intel Capital leading corporate IoT investment activity.

Qualcomm Ventures maintains the most active IoT investment strategy, participating in Augury's $75 million round and Blues' $25 million round in 2025. Their investments target companies that can drive adoption of Qualcomm's cellular and Wi-Fi chipsets for IoT applications. Intel Capital follows similar logic, investing in Skylo's satellite connectivity platform that complements Intel's edge computing hardware.

Deutsche Telekom Capital represents the telecom operator investment thesis, leading 1NCE's $60 million round to build global IoT connectivity platforms that generate data traffic across telecom networks. This reflects broader telecom industry strategy to capture value from IoT data transmission rather than just device sales.

Alphabet's GV (Google Ventures) maintains IoT exposure through broader technology investments but rarely discloses specific IoT deals. Amazon's Alexa Fund focuses on voice-enabled IoT devices while AWS provides cloud infrastructure partnerships rather than direct equity investments. Cisco Investments participated in interconnect and chip startups but exited LoRaWAN hardware investments, signaling focus on software and services.

Siemens Next47 targets industrial edge and software orchestration startups that integrate with Siemens' factory automation systems. Bosch Ventures backs semiconductor and industrial automation companies that enhance Bosch's manufacturing equipment portfolio.

Which IoT sub-sectors are currently attracting the most investor attention?

Industrial IoT and predictive maintenance dominate investor attention, capturing approximately 40% of large funding rounds with companies like Armis ($200M), AssetWatch ($75M), and Augury ($75M) leading the category.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

If you want to build or invest on this market, you can download our latest market pitch deck here

What are the typical investment sizes, stages, and conditions for IoT funding rounds?

IoT funding follows distinct stage patterns with seed rounds ranging $0.5-5 million, Series A at $7-20 million, Series B at $20-50 million, and Series C-D reaching $50-200 million.

Seed and pre-seed rounds typically use convertible notes or SAFEs, focusing on proof-of-concept development and initial customer validation. Investors expect working prototypes and clear paths to revenue generation rather than just technology demonstrations.

Series A rounds emphasize product-market fit with $7-20 million raises. Strategic investors begin participating at this stage, bringing customer relationships and technical expertise alongside capital. Corporate VCs commonly take board observer rights and pro-rata participation rights for future rounds.

Series B rounds of $20-50 million focus on scaling teams and sales operations. Institutional VCs typically lead these rounds while corporate investors provide strategic value through customer introductions and technical partnerships. Board seats become standard for lead investors.

Series C-D rounds reaching $50-200 million target growth capital and international expansion. These rounds often include debt components or joint venture terms with strategic partners. Corporate investors frequently negotiate preferred vendor status or exclusive licensing arrangements as investment conditions.

What technological breakthroughs and R&D trends in IoT are attracting funding from top investors?

Low-power Wi-Fi 6 chips represent the most funded breakthrough, with Qualcomm's QCC730 and Silicon Labs' SiWx917Y enabling battery-powered IoT devices to operate over standard TCP/IP networks.

Satellite IoT connectivity attracts significant R&D investment through LEO constellation deployments from SpaceX and China's Thousand Sails project. Skylo's $30 million round demonstrates investor confidence in satellite-cellular hybrid solutions that provide seamless global coverage for remote IoT applications.

Edge orchestration standards, particularly the Margo architecture, receive backing for converged edge and cloud device management across multi-vendor deployments. Viam's $30 million Series C targets hardware-agnostic robotics and sensor orchestration software that simplifies complex IoT deployments.

AI-powered predictive analytics integration captures investor attention through partnerships like Advantech and Namla, enabling real-time insights at edge devices. These solutions reduce cloud dependency and latency while improving decision-making capabilities for industrial IoT applications.

Cybersecurity and regulatory compliance drive investment in security-by-design platforms responding to the EU Cyber Resilience Act and U.S. IoT labeling requirements. Companies building compliance-first IoT platforms receive premium valuations as regulatory requirements create competitive moats.

Who are the most active individual angel investors and micro-VCs in the IoT space?

The Techstars network provides the largest pool of active IoT angel investors through its global mentor network spanning Boulder, Boston, London, and Tel Aviv hubs.

• SOSV (Hardware 1, MOX): Specializes in hardware-centric IoT startups with dedicated programs for consumer electronics and industrial applications
• Plug and Play Tech Center: Provides seed investments and corporate partnership facilitation for IoT startups connecting with Fortune 500 partners
• Dynamo Ventures: Focuses on APAC IoT hardware and platform companies with particular strength in Southeast Asian markets
• Monozukuri: Japanese micro-VC targeting manufacturing and industrial IoT applications with strong Tokyo ecosystem connections
• bValue VC: European micro-VC with concentrated IoT hardware investments across Nordic and German markets

These micro-VCs typically invest $100,000-$1 million in pre-seed and seed rounds, providing not just capital but also technical mentorship and customer introductions. Their smaller fund sizes allow for more hands-on involvement compared to larger institutional investors.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

If you need to-the-point data on this market, you can download our latest market pitch deck here

How have IoT investment trends evolved over the past two years, and how do 2024 and 2025 compare to previous periods?

IoT investment trends shifted dramatically from hardware-focused hype in 2022 to software and services emphasis in 2024-2025, with average round sizes consolidating around proven business models.

2022 represented peak hardware IoT investment with record average round sizes of $16-17 million and industrial IoT applications leading funding activity. Investors showed strong appetite for hardware startups promising revolutionary sensing capabilities and edge computing breakthroughs.

2023 marked a significant correction as macroeconomic headwinds forced consolidation across the IoT startup ecosystem. Investment emphasis shifted toward software platforms and services that could demonstrate immediate revenue generation rather than long hardware development cycles.

2024 emerged as an off-year for hardware investments despite 13% connected device growth reaching 18.8 billion units globally. Enterprise spending of $298 billion demonstrated strong market demand, but investors preferred established players with proven traction. The largest funding round reached $276 million (Terminus), with seven rounds exceeding $100 million.

2025 through July shows rebound activity in mid-stage deals ranging $25-75 million, with corporate VCs doubling down on AI-enabled IoT platforms. Private satellite connectivity gained significant momentum through deals like Skylo's $30 million round, indicating investor confidence in next-generation connectivity solutions.

What signals are experts monitoring to predict IoT capital flows for 2026?

AI and IoT integration represents the primary signal experts track, with large language models embedded at edge devices enabling autonomous decision-making without cloud connectivity.

5G RedCap and eSIM adoption provide technical indicators for enhanced device lifecycle management and flexible connectivity options. These technologies reduce operational complexity for IoT deployments, making business models more attractive to investors seeking scalable revenue streams.

Regulatory compliance demands from the EU Cyber Resilience Act and CE-marking requirements create market opportunities for security-by-design platforms. Companies building compliance-first solutions receive premium valuations as regulatory requirements establish competitive moats.

Satellite-cellular hybrid solutions signal infrastructure convergence, with mobile network operator partnerships enabling global coverage for IoT applications. Deals like Skylo's satellite connectivity platform indicate investor confidence in seamless network integration.

Sustainability use cases across energy utilities, carbon tracking, and smart grid applications attract ESG-focused venture capital. Climate technology investors increasingly view IoT platforms as essential infrastructure for environmental monitoring and carbon reduction initiatives.

Which upcoming startups are positioned as rising stars likely to attract major funding in the next 12 months?

Myriota leads the satellite IoT connectivity category with A$50 million backing from Australia's National Reconstruction Fund, positioning for Series B expansion into global markets.

These companies demonstrate strong investor backing, differentiated intellectual property, and scalable product platforms positioned for larger funding rounds in late 2025 or early 2026. Their technologies address critical infrastructure needs while building sustainable competitive advantages through hardware-software integration or regulatory compliance capabilities.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. IoT Analytics IoT Startup Landscape
2. Seedtable Internet of Things IoT Investors
3. Failory IoT Venture Capital Firms
4. CRN Hottest IoT Startups 2025
5. 1NCE Funding Press Release
6. IoT Analytics 2024 Review
7. IoT Analytics Connected Devices
8. IoT Business News Startup Landscape
9. IoT Insider Startups Analysis
10. Papermark IoT Investors
11. TurnKey IoT VC Investors
12. Avnet IoT Startup Funding